Corporate Responsibility and Sustainability Report 2008 1 July 2007 – 30 June 2008

message from CR&S committee

our highlights and priorities

04

06

what makes good governance

understanding our stakeholders

10

14

our commitment to our people

engaging in the marketplace

welcome to our corporate responsibility and sustainability report About us 3 4

18

30

our commitment to building communities

our commitment to the environment

42

48

message from Stockland UK Managing Director

independent assurance statement

64

72

memberships, awards and ratings

GRI index

74

76

1 2

Stockland is one of Australia’s leading diversified property groups with total assets of over $14.7 billion and operations in Australia and the United Kingdom. We’re active in retail, office and industrial property, as well as residential communities, apartments and retirement living.

6 7

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At 30 June 2008 we had over $900 million assets under management in Australia and $2.3 billion of assets under management in the UK and continental Europe. We are a top 50 Australian Securities Exchange listed Company (ASX: SGP) and have achieved 26 consecutive years of growth in operating earnings.

Where we are 1 2 3 4 5 6 7

Sydney, Australia Melbourne, Australia Brisbane, Australia Perth, Australia London, UK Glasgow, UK Edinburgh, UK

Diversity by asset class and geography underpins our continued performance. Our capability is strengthened by having a ‘one company’ approach but with the strengths of a diversified business. Our vision is to create a world class property group. We see that our purpose is to deliver enduring value for our stakeholders through innovative, customer-focussed property solutions.

Our business model One integrated platform ensures synergies, economies of scale and knowledge transfer across our diverse and global portfolio.

Our responsibilities to our stakeholders shape our mission: • We recognise that our people are our most important asset • We strive to exceed our customers’ expectations • We aim to provide superior returns to our investors through outstanding performance

Retirement Living

llaboration Co

Integrated mixed-use capability Sy

Apartments

• We respect our relationship with authorities and Government

Retail

UK

n ergies

Residential Communities

Office

Industrial

• We create equitable, rewarding partnerships by being clear about our expectations and sharing innovation and knowledge • We aim to understand our role in the community – where we create places for new and existing communities, and in the community beyond, where we have an impact.

Our strategic themes: • Optimise performance from existing businesses • Capital Partners to fund growth and leverage our skills • Seek synergies from our scale and diversification • New complementary business initiatives • High performing people and culture. During the year, a number of structural changes have taken place responding to changing market conditions. Group Design and Delivery was launched in early 2008 leading design and product innovation across the organisation, with the aim of achieving excellence in project design and delivery, supporting the execution of successful mixed-use projects. At the close of the year, the retail and office and industrial businesses were consolidated into a single group, Commercial Property. At the same time, our Capital Partners business was decentralised into our operating businesses to more effectively leverage our property skills.

Doing the right thing as a property owner, manager, developer and fund manager through the eyes of our stakeholders, is about dealing with risk, seeking opportunities and creating long-term value for our investors.

We are an owner, manager, developer and fund manager of assets: • Owner – We own shopping centres, office buildings, industrial sites and retirement villages. As a building owner, we have a substantial level of control over the environmental performance of these assets. • Manager – We also manage shopping centres, office buildings and industrial sites. Typically, a property manager’s level of control over the environmental performance of assets is limited to influence. Nearly all assets we manage, however, are either owned by us or are placed in funds managed by us, meaning that we have greater ability to influence the performance of these assets. • Developer – We are developing over 90 residential projects nationally, as well as new and substantially refurbished retail, office and industrial projects. As a developer, we have significant capacity to shape environmental and social outcomes. However, our ability to affect supply chain decisions can be limited as we rarely act as the principal contractor (builder). • Fund manager – We have $900 million in assets under management. Typically, the fund manager has some scope to influence social and environmental performance through directing the property manager. We are able to exercise a reasonable level of control as we typically manage the assets in our property funds.

Stockland Corporate Responsibility and Sustainability Report 2008

1

about this report This report reflects our performance during our financial year, 1 July 2007 – 30 June 2008 (FY08). It explores how we see our responsibilities to our stakeholders and the environment, it sets out our Corporate Responsibility and Sustainability (CR&S) Strategy, it looks at how we work with people within and beyond our business, and finally we discuss how we have responded to interests, risks and opportunities over this time. We highlight our achievements, as well as share our ongoing and emerging challenges for our business.

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To identify our most material issues, shape the content of this report and support the assurance process, we appointed an employee editorial panel. We’ve also reviewed this report with our CR&S Board Committee and the CR&S Employee Committee. Together with our 2008 Financial Report and our 2008 Shareholder Review, this report gives a full account of our environmental, social, governance and financial performance for the year.

The report this year is being produced in three forms:

We have chosen to submit our report to assurance again this year, applying the AA1000 Assurance Standard’s principles of materiality, responsiveness and completeness.

• CR&S Summary Review – distributed to investors • CR&S Report – this detailed report is available for download from www.stockland.com as a PDF document • CR&S HTML – an interactive online version of our report to be available at www.stockland.com

We have also reported against Global Reporting Initiative (GRI) criteria, complying with the GRI application level B+ (third party checked). We have applied GRI criteria to our Australian operations only. Our response to GRI criteria varies in response to our level of control as owner, manager, developer and/or fund manager of assets.

To best reflect our responsibilities in this report, we have engaged our employees and a range of external stakeholders with specific interests and expertise in each of the dimensions addressed by our CR&S strategy.

This year, our report also includes our Retirement Living business – acquired in early 2007. Stockland UK, also acquired in early 2007 has reported separately at the close of this document. We propose to more fully integrate Stockland UK into our report next year and apply GRI criteria across our global operations.

Stockland Corporate Responsibility and Sustainability Report 2008

our approach to corporate responsibility and sustainability

Environment The takeholde O ur S rs

Suppliers and Partners

Government

Investors

Our People Customers

Community

We take the view that doing the right thing as a property manager, owner and developer, is about dealing with risk, seeking opportunities and creating long-term value for our investors. And it’s about balancing the needs and interests of our stakeholders. We define sustainable development in the widest sense, supporting the UN’s Brundtland definition as ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” 1 To bring our commitment to life, we have a comprehensive CR&S Strategy, which we refresh each year in light of changing internal and external conditions. Our approach is framed around our responsibilities to our stakeholders and our impact on the environment: •U  nderstanding and engaging with our stakeholders, which includes: –E  ngaging with and respecting our people – Working towards common goals with our suppliers, partners, investors and customers in the marketplace –S  trengthening our place in the wider community. • Taking care of the environment in which we operate – including identifying and responding to risks and opportunities associated with climate change.

CR&S Board Committee We recognise that a sustainable future for our business depends upon the sustainability of the communities, economy, society and environment in which we operate. The purpose of the CR&S Board Committee is to assist the Board in overseeing Stockland’s commitment to operating its businesses ethically, responsibly and in a sustainable way. The Committee meets at least four times annually. The following Directors were members of the Committee at the close of financial year: • Mr N Greiner (Chair) – Non-Executive Director • Mr G Bradley – Non-Executive Director • Mr M Quinn – Managing Director. A monthly report on CR&S, including progress made on environmental sustainability issues, is submitted to the Executive Committee and to the Board. The report includes annual greenhouse gas emissions data for the retail and office portfolios, tracked against industry benchmarks.

Management In order to integrate sustainability practices into our business and provide leadership on CR&S matters, we have specialist sustainability managers across the organisation. These roles over the past year included: • General Manager (GM), CR&S •G  eneral Manager, Health, Safety and Environment (HSE) •N  ational Sustainability Managers for the Retail, Residential and Office and Industrial businesses.

The Committee is chaired by the GM CR&S and current members include our National Sustainability Managers as well as representatives working in Government Relations, Procurement, Health, Safety and Environment, Compliance, Audit and Risk, Strategic Urban Planning and Stakeholder Engagement. Areas of focus Our CR&S Strategy is driven by our relationships with our various stakeholders and our interaction with our environment.

CR&S Employee Committee Our CR&S Employee Committee has responsibility for shaping and annually refreshing our CR&S Strategy and action plan. A two-day workshop, held each year, helps us to prioritise our most important issues. This strategy is reviewed by our CR&S Board Committee and is then integrated into business activities. Reflecting our people-led focus on sustainability, our CR&S Employee Committee was formed in 2004. Since then it has had a diverse membership reflecting the business and functions of our organisation. This Committee meets monthly to track progress against the CR&S Strategy.

Stockland UK Stockland UK became part of the Group in May 2007. Our UK business developed a CR&S Strategy in December 2007 and established its CR&S Employee Committee in January 2008. Members of the UK Committee remain in frequent contact with Sustainability Managers in Australia, ensuring alignment across the organisation, while responding to local needs and opportunities. The process has had its challenges, but the first contribution of the UK business to our CR&S Report demonstrates the considerable progress we have made in a short period of time.

1 Our Common Future, Brundtland Commission, UN World Commission on Environment and Development, Section 2II

Stockland Corporate Responsibility and Sustainability Report 2008

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message from our cr&s committee

CR&S Board Committee Report

It gives us great pleasure to present Stockland’s 2008 CR&S Report. This is our third CR&S Report, which, together with our 2008 Financial Report, gives an account of our environmental, social, governance and financial performance for the year. We are strongly committed to being an ethical, responsible organisation. When it comes to sustainability we are very proud of what we have achieved. For Stockland, corporate responsibility and sustainability is about doing the right thing – achieving the right balance and integration of environmental, social and financial dimensions. This year our achievements were recognised with our listing on the Dow Jones Sustainability Index World (DJSI World). We have also been listed on the FTSE4Good Index and as property funds managers, we became signatories of the Investor Group on Climate Change and the United Nations Principles for Responsible Investment. We measure and monitor our performance and progress in CR&S in many ways, guided by our CR&S Strategy. In particular, we have improved our GHG emissions reporting. Our National Australian Built Environment Rating System (NABERS) Energy average portfolio rating for our office portfolio is 2.9 stars. This has remained constant as we now include our whole portfolio for assessment.

Nick Greiner Deputy Chairman Matthew Quinn Managing Director Graham Bradley Chairman

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Stockland Corporate Responsibility and Sustainability Report 2008

Our long-term approach Despite challenging economic conditions, we have not changed our view that sound corporate responsibility and sustainability policies are fundamental to our business. They are not fair-weather policies to be put aside when times are tough. Rather, we confidently believe that our approach will ensure the long-term success of our business. Addressing climate change Climate change is now well recognised as being a new challenge with far reaching implications. While global warming and carbon abatement create potential challenges for our business, they also present opportunities for innovation. To tackle these issues we are committing ourselves to implementing a Climate Change Action Plan. This comprehensive plan guides our approach to minimising our carbon emissions. Fundamental to our plan is accurate measurement of carbon emissions, and energy and water use across our business. In the past year we stepped up our use of energy efficiency measurements and achieved significant energy intensity reductions, which will deliver long-term cost benefits across our portfolios. With our new data capture system, we are preparing to report on emissions as required under the new National Greenhouse and Energy Reporting Act 2007 (NGERA). We will continue to improve our carbon data management and reduce the intensity of emissions across our portfolios in future years. We also address climate change by creating and managing more environmentally-sensitive developments that will be of enduring value to our customers, tenants and business partners – as well as our investors.

CR&S Board Committee and Leadership Team Graham Bradley (Chairman); Matthew Quinn (Managing Director); Nick Greiner (Deputy Chairman), Rilla Moore (Executive General Manager, Human Resources); Cliff Bromiley (General Manager, Health, Safety and Environment); Siobhan Toohill (General Manager, Corporate Responsibility and Sustainability)

We are strongly committed to being an ethical, responsible organisation. When it comes to sustainability we are very proud of what we have achieved. While our individual efforts will benefit our business and positively address environmental risks, industry-wide changes are needed to meet the challenges of climate change. We encourage our Governments to introduce complementary policies and programs that promote energy efficiency in the built environment. In particular, we have put the case forward for tax-based incentives to encourage environmentally efficient retrofitting of commercial buildings. We also support adoption by our industry of well developed rating tools and streamlined reporting requirements.

Innovative solutions Over the past year we have adopted a range of innovative policies, programs and initiatives to embed corporate responsibility and sustainability across our business. For example, our new Residential Sustainability Policy sets stretch targets for all our housing developments. We have also rolled out a green Retail Design and Fitout Guide for our shopping centre tenants. We have invested resources to better understand ways to deliver more affordable housing in Australia. These initiatives are supported by our new Design and Delivery Group, that provides innovative design leadership and streamlined delivery of projects across our business. Stakeholder engagement This year we have focussed on understanding our stakeholders better – learning from projects where relationships with local communities have been strained. Our new stakeholder engagement approach is now integrated with our project management processes so that we can respond earlier and better to the concerns of local communities.

We are proud of the high degree of engagement of our employees and particularly the way the organisation has embraced corporate responsibility and sustainability. For the fourth year running our employee engagement score was more than 80 per cent, with our commitment to social and environmental responsibility being a major contributing factor. In the UK, the integration of the business we acquired is now complete. Over the past year, employees from both countries have travelled to build relationships, and share knowledge and business practices. In particular, high levels of commitment to sustainability in the UK were reflected in our employee survey results. This year, our UK business is included in our report for the first time, covered in a separate section. Raising the bar The bar is continually being raised when it comes to corporate responsibility and sustainability and we are proud to be taking a leading role in this. While some parts of our business have more readily embedded concepts of sustainability, others are only beginning to grapple with the risks presented by climate change. We recognise that we have more work to do as we continue to review our strategy and set goals for our organisation.

We thank all our people for the contribution they have made to strengthen our strategies and practices. With our commitment to environmentally and socially responsible practices, our people and stakeholders can be confident we will continue to focus on doing the right thing.

Graham Bradley Chairman

Nick Greiner Deputy Chairman, Chair of CR&S Board Committee

Matthew Quinn Managing Director

Stockland Corporate Responsibility and Sustainability Report 2008

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our highlights and priorities

Employee engagement score

2008

83%

2007

85%

2006

83

%

Our highlights in Australia include:

Our priorities for the coming year include:

• Listing, on our first application, on the Dow Jones Sustainability Index World Real Estate sector. The Index represents the top 10 per cent of the leading sustainability companies globally. We are also included in the FTSE4Good Index which recognises organisations that apply and demonstrate outcomes against environmental, social and governance principles

• Streamlining our sustainability process documents – our Residential Sustainability Policy, our Office and Industrial Manual, and our Retail Charter – and implementing these documents across our business activities

• Reducing the intensity of our carbon emissions (CO2-e per m2): – By 11 per cent for our Australian office portfolio – By 6 per cent for our Australian retail portfolio. • Engaging our suppliers, particularly our larger building partners representing 17 per cent of our supply chain spend, on shared sustainability risks and opportunities • Enhancing our approach to stakeholder engagement, underpinned by a common stakeholder engagement framework • Sustaining our high employee engagement scores, despite challenging market conditions • Launching workplace giving and expanding volunteering opportunities for our people nationally.

eco-efficiency2

• Aligning our approaches to both the Retail and Office (now Commercial Property) portfolios •B  etter understanding the physical risks associated with climate change – and the implications for our business •F  urther enhancing our stakeholder engagement practices, including improving our dialogue with communities on current and future projects.

Stockland Corporate Responsibility and Sustainability Report 2008

2005

FY08 FY07 FY06

11

%

Retail GHG emissions intensity down

FY08 FY07 FY06

6

%

82%

113.3* 127.8* 136.6*

* kg CO 2 / m 2

* kg CO2 / m2

The past year has been a period of consolidating some practices, as we have sought to improve our CR&S performance through further embedding CR&S actions into the business. 2 Eco-efficiency is a term defined by the World Business Council for Sustainable Development as “creating more goods and services with ever less use of resources, waste and pollution.”

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Office GHG emissions intensity down

84%

77.2* 82.2* 88.6*

CR&S at Stockland Our approach is framed around our responsibilities to our stakeholders and our impact on the environment.

Stockland Corporate Responsibility and Sustainability Report 2008

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update: stockhome Our Sydney office has been designed to be environmentally preferable with a focus on energy, water, waste, materials, transport and indoor environmental quality. Commitment to maintaining a minimum NABERS Energy Rating of

4

stars

The design of Stockhome Our new Sydney office reflects our commitment to environmental sustainability and encourages interaction and collaboration among our people.

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Stockland Corporate Responsibility and Sustainability Report 2008

In April 2007 our Sydney employees moved into new offices, Stockhome. The design of Stockhome reflects our open culture and encourages interaction and collaboration. At the heart of Stockhome, a void has been cut with a staircase winding through, linking the office floors together. The central, sunlit area with its vistas across the city is surrounded by break-out areas, tea points and meeting rooms. Our people interact and work in the communal spaces, including open plan meeting areas in the café. Our Sydney office has been designed to be environmentally preferable3 with a focus on energy, water, waste, materials, transport and indoor environmental quality. Many of these initiatives were implemented in the design phase, however some, such as energy efficiency, are ongoing initiatives. For example, we have committed to CitySwitch Green Office (previously 3CBDs), a tenant energy program. Participation in this program involves commitment to achieving and maintaining a minimum 4 Star National Australian Built Environment Rating System (NABERS) Energy rating4. 3 Environmentally preferable refers to products or services that have a lesser or reduced effect on human health and the environment when compared to other products or services that serve the same purpose. 4 NABERS Energy for offices was formerly known as ABGR – Australian Building Greenhouse Rating.

As a goal for Stockhome, we committed to surpassing our CitySwitch commitment. We intended to achieve this rating by using tri-generation (onsite gas-fired electricity generation) as an energy source for the tenancy. This technology will be in place by the end of December 2008, and in the interim we are exploring purchasing green power to achieve this rating. We track the energy consumption of the tenancy through an energy report each month. The tenancy is currently using over 30 per cent less energy than a 2.5 star NABERS Energy tenancy. Achieving these energy ratings has been a challenge. Energy efficiency in a workspace is closely related to employee behaviours, such as lighting, computers and after hours load. To address this, our representative Stockhome Sustainability Committee develops and promotes sustainability principles and practices among people in our Sydney office. The committee educates and engages our employees around: • More efficient use of resources • Ways we can achieve our target environmental ratings • Actions in the workplace that can help reduce environmental impacts. When we moved to our new Sydney office in April 2007, scans performed by our Information Technology (IT) team showed that just 52 per cent of employees turned off their computers at night. Through some simple measures we have increased the nightly switch-off rate of computers to 84 per cent. This change was supported by our Green Leaders Prize – a competition between floors encouraging employees to switch off computers and monitors when not in use. We’ve also configured our multi-function devices to power down into sleep mode after 45 minutes of non-activity, instead of four hours. We currently have a trial underway to reduce this to 25 minutes.

Our actions were a factor in the manufacturer’s decision to take the steps in reducing the default standby mode to five minutes and sleep mode to 15 minutes for office devices prior to delivery. This is an example of how we can work with our stakeholders to achieve improved environmental performance. Other steps we’ve introduced at Stockhome include: • Using 60 per cent recycled Australian-made paper in our printer/copiers – we’re now investigating using up to 100 per cent recycled paper • Working with our in-house café providers to recycle plastic and glass bottles • Recycling mobile phones and printer and toner cartridges through Mobile Muster and Planet Ark • Changing to eco-friendly kitchen products to meet our Green Lease objectives • Encouraging sorting and recycling of waste at desks and in the kitchen, and incorporating this into Stockhome induction training • Fortnightly educational communications to employees.

While detailed analysis will not be delivered until later this year, early results indicate the user experience of Stockhome is significantly better than our former Sydney office. On average, our people assessed that their productivity has increased as a consequence of improved indoor environmental conditions and a high proportion of employees rated the sustainable design features incorporated into the workspace as being important to them. We look forward to using the results from this review in guiding our ongoing management of Stockhome. We also expect that the results will contribute to our understanding of the benefits of sustainable workplaces, informing our future commercial office development projects.

Our Green Star rating for our Stockhome tenancy is being finalised for the Green Building Council of Australia (GBCA). With our commitment to piloting innovative In November 2006, prior to our office technology, our building will be the first in the relocation, an evaluation of the ‘occupant City of Sydney to install tri-generation. This experience’ in the existing office space was undertaken as the first stage of a pre and has added complexity to our rating, and we are working with our consultants and the post-occupancy review. The purpose of the GBCA towards a finalised rating in FY09. pre-occupancy review was to provide an internal benchmark against which to compare We are also seeking a Green Star rating for our new office. our Melbourne offices which we moved into in May 2007. As with Stockhome, working We have since completed our postthrough the as-built Green Star Interiors tool occupancy survey. Over 200 employees provided feedback on overall satisfaction with with our builders has taken longer than we comfort, temperature, lighting and air quality, expected. We anticipate also finalising our rating for our Melbourne Offices in FY09. design, image, how well the facilities meet workplace needs, and perceived health and productivity benefits.

Our representative Stockhome Sustainability Committee develops and promotes sustainability principles and practices among people in our Sydney office.

Stockland Corporate Responsibility and Sustainability Report 2008

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what makes good governance

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Engagement with Government Matters we have engaged with Government over the past year have included climate change, housing affordability and infrastructure provision. Stockland Corporate Responsibility and Sustainability Report 2008

We expect our projects to be judged on their merits alone. It’s important to us that our community stakeholders share this view.

We are committed to ethical behaviour in all our actions. Our corporate governance approach and policies are outlined in our 2008 Annual Financial Report and are available on our website. Over the past year, we have refreshed a number of policies: • Code of Conduct and Ethical Behaviour • Privacy, Operational Risk, Compliance • Government Relations.

Risk management Our risk management team seeks to identify risks at early stages via: • Strategic risk profiling exercises • Audits of corporate processes and analysing financial and operational risk. The risk profiling process involves our risk team engaging with the senior leadership team and other key managers within the organisation, to identify and assess organisational risk. An assessment of key risks is presented to the Board annually, with active management and monitoring of risks throughout the year by our Compliance, Audit and Risk team. The non-financial risks identified during the past year through our risk profiling exercises have been discussed in this report. Political donations and Government relations At Stockland we seek to be highly ethical in all our dealings with Government. Like many companies, however, we have, in the past, made donations to political parties under a Board approved policy framework, on a broadly bipartisan basis to support the democratic process. We have now adopted a new policy of not making donations to politicians or political parties at any level of Government with effect from 1 July 2008. This new policy extends to payments for political fund-raising functions.

In adopting our new policy we are mindful that misconceptions about political donations could undermine our stakeholders’ view of the Company’s integrity. We expect that all of our projects are to be judged on their merits. It is important to us that both Government and all our stakeholders are clear about our approach. Over the past year we gave $164,124 to State political parties in New South Wales, Queensland, Western Australia and Victoria and $1,000 each to Federal Labor and Liberal parties. We will make Australian Electoral Commission and state-based declarations. We contribute to the public policy work of the Business Council of Australia, the Property Council of Australia, the Shopping Centre Council of Australia, the Urban Development Institute of Australia, the Residential Development Council and the Green Building Council of Australia and where appropriate, make direct submissions to Government beyond those of our industry bodies. Matters we have engaged with Government over the past year have included climate change, housing affordability and infrastructure provision.

Stockland Corporate Responsibility and Sustainability Report 2008

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discussion: climate change

Climate change is a profound challenge facing society We know it’s time to act. We have seen commitment to take action against climate change gain momentum in Australia in the past year. In late 2007, the Australian Government ratified the Kyoto Protocol. Australia has committed to meeting its Kyoto Protocol target, and has set a longer term target to reduce greenhouse gas emissions by 60 per cent of 2000 levels by 2050. The Australian Government is also working towards the development of an Emissions Trading Scheme (ETS, now known as the Carbon Pollution Reduction Scheme – CPRS). Governments have also introduced legislation to encourage the uptake of energy efficiency programs in existing property assets and have set minimum standards for new assets, particularly housing. In addition, State and Local Government is increasingly concerned with developing guidelines in relation to physical impacts associated with climate change. The physical risks associated with climate change, and their impact on settlement and society, are set out in the Intergovernmental Panel on Climate Change’s (IPCC) 2007 Synthesis Report (Fourth Assessment Report)5 . Some of the likely impacts on property, stated in the report, include: increased number of warmer/hotter days and fewer cold days, increased heavy precipitation events, and an increased incidence of extreme high sea level. Our response to these challenges helps to shape our broader CR&S Strategy. Understanding the potential impacts of climate change on our assets and developments will help us mitigate the risks to our business and reduce our own contribution to climate change.

Our approach to climate change Understanding the potential impacts of climate change on our assets and developments will help us mitigate the risks to our business and reduce our contribution to climate change.

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Stockland Corporate Responsibility and Sustainability Report 2008

Climate Change Action Plan Last year we shared our aims for our Climate Change Action Plan (CCAP). We have achieved a number of our aims. Our CCAP crosses all areas of our CR&S Strategy, from how we manage our buildings, to how we engage with our suppliers and partners, to how we measure our performance. Some of the potential risks we face include the continued amenity and functionality of our existing assets, for which the built infrastructure has typically been specified to accommodate historical temperature and humidity trends. Climate models predict a greater number of days falling beyond these design parameters. We also need to improve our understanding of the increased risks of flooding when planning developments near the coast or in flood-prone areas. New developments may need to account for a possible increase in the frequency of floods. With increasing regulation and growing Government and community engagement on climate change, planning approval risk may also increase. In our 2008 CR&S Strategy we committed to commencing a program of climate change risk analysis, focussing on physical, planning and regulatory risks. This program will initially focus on a number of sites considered to be in potentially higher risk areas. This work will commence in late 2008. In the meantime, we are actively working to reduce our environmental impact and we will investigate ways to mitigate the effects of climate change on our assets.

5 http://www.ipcc.ch/pdf/assessment-report/ar4/syr/ar4_syr.pdf, p53.

Our first step has involved measuring and understanding our current emissions. We are nearing completion of our CCAP Online Tool, which has been developed to collate data and support reporting, as well as help us model energy efficiency scenarios. The tool tallies data at corporate, business unit and asset levels. It accommodates changes such as asset acquisition and disposal. Data now extends back to the 2005 calendar year. As well as calculating total emissions, the tool generates ‘intensity’ metrics – a meaningful metric communicating emissions per square meter of office/retail space, enabling us to better understand the energy efficiency of assets. We are widening the CCAP database to encompass water and waste data. This data is currently coordinated at an asset and business unit level and will be rolled into a corporate database on a monthly basis. In our office portfolio, we continue to roll-out annual NABERS Energy assessments, checking year-on-year performance. The individual ratings of our office buildings can be found on page 75. Discussion of our portfolio average can be found on page 54. Our next step is eco-efficiency. Through investing in capital works in our office, industrial and retail portfolios, we can cut energy consumption, lessen our impact on the environment and make financial savings into the medium and longer term. We can also improve the ‘green ratings’ of our buildings and thereby enhance their attractiveness to prospective customers and retailers. ‘Future-proofing’ our existing assets is a key part of our strategy, and an explanation of our approach and performance over the past year can be found on pages 53 to 56.

Along with direct physical risks from climate change, we also face indirect impacts, particularly through the introduction of an ETS. We are likely to see increased costs of energy and fuel. We also expect that the cost of carbon intensive building materials will increase. We are commissioning consultants to assess supply and price risks in the electricity market. Partially in response to this challenge, over the past year we have increasingly engaged with our supply chain on CR&S, including climate change risk and carbon management. One of our goals is to better understand our carbon footprint through our supply chain. We have held extensive dialogues on CR&S with 10 of our largest suppliers, representing around 17 per cent of our overall spend. To learn about the pilot of our Sustainable Supply Chain Management program go to page 34. In some areas of our business we see that customers are increasingly engaged on sustainability, with growing expectations around the performance of property assets. Some tenant groups, including Government, have stated the aim to only occupy buildings that meet minimum sustainability (energy efficiency) requirements. Earlier in 2008 we interviewed a range of our office tenants – with responses widely confirming interest in sustainable workspaces. Further discussion of the outcomes of this study, as well as details of how we are seeking to engage with our customers and communities on climate change and broader CR&S issues can be found on page 37 of this report.

past

present

Last year we shared our aims for our Climate Change Action Plan. Over the past year we have refined these aims:

This year we have achieved a number of outcomes towards our aims:

Structure and set emissions targets.

We are near completion of a robust database – our CCAP Online Tool. We intend to expand the tool into scenario modelling to assist with setting ‘informed’ emissions reduction targets.

Capture the short and long-term value of our actions.

We have invested in a range of energy efficiency solutions across our retail and office portfolios. We know that some solutions will deliver a shortterm efficiency improvement, while investing in new technology might come at significant initial cost but will underpin longer-term efficiency solutions. We’re committed to return-on-investment modelling, to better understand achieved and future costs and efficiencies. We provide more details on pages 49 and 59.

Commit to effective carbon markets.

We have engaged in dialogue with Government and industry in the development of an ETS and scope for complementary mechanisms and incentives for carbon abatement in the property sector. We are not currently looking to procure offsets. Our principal focus is to invest in energy efficiency, achieving longer term savings and reducing emissions. We have begun exploring the procurement of green power for offices, responding to tenants’ demand for higher rated tenancies.

Provide leadership beyond our direct influence.

We have embarked on a Sustainable Supply Chain Management program, engaging some of our largest suppliers on environmental performance, including emissions measurement. See page 34.

Commit to innovation – investigating new ways to manage and develop property assets.

We have undertaken a number of investigations of low-carbon technologies. Redevelopment of our Sydney office (Stockhome) demonstrates what can be done with an existing building. See pages 8 and 49.

Use meaningful metrics to measure and communicate our performance relative to our peers.

Our CCAP Online Tool will include intensity metrics. We also remain committed to the annual NABERS review of our office portfolio. See pages 60 to 63 for our performance metrics.

Stockland Corporate Responsibility and Sustainability Report 2008

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understanding our stakeholders

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Stockland Corporate Responsibility and Sustainability Report 2008

Our stakeholders Core to corporate responsibility at Stockland is balancing the needs of our different stakeholder groups. Our key stakeholders include customers, suppliers and partners, Government, communities, shareholders and the investment community, industry and the media.

future In the coming year, our priorities are to: •P  ut stakeholder plans in place for our largest and most complex projects •C  ontinue to roll-out plans for existing assets.

We seek to understand the interests and concerns of our stakeholders. We identify our major stakeholders as: Governments and regulators Federal and State Governments set the regulatory and legislative environment within which Stockland operates. We engage with Governments and regulators at Local, State and Federal levels directly and through industry associations. Customers Our customer groups are diverse. They include commercial, industrial and retail tenants, as well as shoppers in our retail centres. Customers also include residential purchasers. Customers are generally concerned with product quality, cost and the delivery experience. Increasingly, customers are also interested in the environmental impacts of products. Over the past year, we have engaged with our customers through surveys and direct interaction. Suppliers Over the past year, we procured services and products from over 4,000 suppliers. We recognise that our suppliers form an extension of our business. Through engaging with our partners we are exposed to shared risks and responsibilities – including in relation to CR&S. We’ve commenced engagement of suppliers on CR&S, whereby 10 of our top 100 suppliers have been engaged in a process designed 6 to align CR&S values.

Communities Our communities include those we create in our residential and retirement living developments, neighbouring residents, tenants and landowners, and the wider communities in which we operate. Our properties create and change communities through their presence, operation and development. We embrace the community-building facet of our business and actively explore ways in which communities can be enhanced through our involvement. Employees We have 1,375 employees in Australia. Just over half are located in our Sydney office, with the rest spread across Australia. Each year we undertake the ‘Our Voice’6 survey to understand our level of employee engagement. In our 2008 survey for example, our employees told us that they felt we were providing opportunities for personal development and growth but that we could do more to improve our work processes. Shareholders and the investment community We have a diverse shareholder base, including institutional and retail investors. We also engage with investment analysts, including analysts with a focus on Environmental, Social, Governance (ESG) performance. There is growing interest among the investment community in our actions towards climate change and addressing our carbon footprint. We engage our shareholders and analysts through our Annual General Meeting, reports and direct contact.

Media The media includes print, radio and television. We have a media strategy that ensures that all corporate communication is thorough, consistent and appropriate. Understanding our responsibilities to stakeholders Over the past year, we have taken steps to improve our understanding of our stakeholders through surveys. Over the coming year, we aim to improve our response to the concerns, interests and rights of our stakeholders. Development of our Stakeholder Engagement Framework Over the past year, we have begun to formalise our approach to stakeholder engagement, recognising that consistent and improved practices will not only help minimise risks to projects but result in better project outcomes. Our Stakeholder Engagement Framework now provides a clear and consistent approach to how we talk, listen and work with our stakeholders. The framework now provides a common approach to stakeholder engagement for our development and asset teams. The framework defines a range of techniques and methods for engaging our stakeholders. It sets out the elements of a good stakeholder engagement plan including: • Designing an engagement plan that is likely to be acceptable to stakeholders

In March 2008 we commenced reporting on stakeholder engagement plans on our projects to the Board and Executive Committee. We report on the number of our large projects with an active stakeholder engagement plan. We also rate the quality of the stakeholder plans. At the end of FY08, 50% of large projects had a stakeholder engagement plan in place with an average score of 2.4 out of 5. Addressing the new framework, refreshed stakeholder engagement plans are due to be rolled-out to all retail, office and industrial developments and retail operating assets in FY09. The plans provide each project or asset team with a consistent approach for identifying and prioritising key stakeholder relationships. The plans detail the steps required for engagement with these stakeholders throughout the project. This may include a community partnership program that can be incorporated into the development. We recognise the value of stakeholder engagement. On many projects, stakeholders will hold a range of divergent views. We aim to better understand, respond to and balance these differing views. Navigating this process is not always easy, and is more difficult on those projects where we have had a history of difficult relationships with stakeholders.

• Keeping the engagement plan current and responsive to circumstances. The Stakeholder Engagement Framework links into our design and construction project life cycle – the Stockland WAVE. WAVE includes site identification and acquisition, strategic planning, statutory approval, project delivery, completion, marketing and many other aspects of project management at Stockland.

Proportion of large projects with a stakeholder engagement plan

50

%

 dministered by Towers Perrin International Survey A Research (TP-ISR). Stockland Corporate Responsibility and Sustainability Report 2008

15

understanding our stakeholders

Stakeholder engagement On many projects, stakeholders will hold a range of divergent views. We aim to understand these differing views and then proceed in the best interests of the community, the environment, as well as ours. Navigating this process is not always easy and is more difficult on those projects where we have had a history of difficult relationships with stakeholders.

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Stockland Corporate Responsibility and Sustainability Report 2008

We recognise that we have had strained relationships on some of our projects, notably our residential community project, The Point, at Sandon Point, near Thirroul, south of Sydney. Our project at Sandon Point has been a challenging one and has attracted negative as well as positive comment from the broader community. Over the past year, we have engaged the local community through: • Meetings with the Illawarra Aboriginal Community on the design of a Keeping Place for Aboriginal artefacts • The public exhibition of a climate change flood risk assessment for the site, and other supplementary information (to be followed by the preparation of responses to issues raised via this statutory process in FY09). While we have engaged with the community in these ways, we recognise that projects like Sandon Point present greater opportunities to canvass and address the views of the broader community, beyond statutory compliance, particularly during the early stages of a new project. As such, in the future, we aim to engage further with the broader community at each of our developments to ensure better outcomes for the existing and future residents. Aboriginal Keeping Place As part of the existing Sandon Point development, we will provide an Aboriginal Keeping Place to protect the cultural heritage values of the area. The Keeping Place will provide a place for the protection of Aboriginal artefacts and a place for contemplation and reflection.

Over the past year we have continued to work with the Illawarra Aboriginal Community, the Department of Environment and Climate Change (DECC), landscape designers and heritage consultants and Wollongong City Council to ensure the Keeping Place becomes an important local cultural feature.

Climate change Concept plan approval (awarded in December 2006) for the development of Sandon Point North was revoked in November 2007 by a Land and Environment Court ruling that the Minister for Planning’s consideration of the impacts of climate change were inadequate. The Minister appealed this ruling, with the appeal being upheld in September 2008. Separately, in response to community concerns and as part of the Concept Plan re-exhibition, we engaged specialists to prepare a Climate Change Assessment to review flood risk at the site in the context of climate change.

In June 2007, we held a meeting with the Illawarra Aboriginal Community to develop the concept design for the Keeping Place. To canvass a range of views from the Aboriginal community, the concept design was circulated to multiple key stakeholders for comment, including the Wodi Wodi Elders Council, the Illawarra Local Aboriginal Land Council, the Wadi Wadi Coomaditchie Aboriginal Corporation, Mr Alan Carriage, Mr Roy Kennedy and the Korewal Eleoura Jerrungarah Aboriginal Corporation. The design concept was also circulated to DECC and Wollongong City Council in April 2008 for comment.

This additional study involved further detailed modelling and analysis of potential rainfall increases, flood impacts, rising sea levels and storm erosion due to climate change. The conclusions confirmed the findings of studies undertaken previously (presented in the Concept Plan) and that climate change flood risk is not a significant risk for the Sandon Point North development.

The form of the Keeping Place was the subject of some debate. Conflicts of opinion did arise and we were not able to incorporate all the requests made by the group. The final design aims to achieve a balance by incorporating the existing cycle path, native landscaping and a series of interpretive works to be designed by members of the Aboriginal Community.

Understanding the impact of climate change on our business is important to us. We are proposing to undertake wide risk analysis research in relation to our projects and assets – particularly those sites close to the coast or in close proximity to flood-zones over the coming year.

We lodged a development application for the Keeping Place with Wollongong City Council in July 2008. Further involvement of the Aboriginal Community will be sought to prepare the detailed design, and further comment will be sought from the wider community through the statutory public exhibition process.

The study was lodged with the Minister and exhibited for public comment during June-July 2008. All comments received will now be considered as part of the application for this development.

Riparian corridors We have negotiated with Wollongong City Council to secure 8.5 hectares of land for community use as public open spaces and to support the rehabilitation and protection of ecological values within the planned riparian corridors along Hewitt’s, Woodland’s and Tramway Creek. Pending approval of the Sandon Point North development, we will dedicate and transfer land to Council. Progress has also been made this year on the rehabilitation and long-term conservation of Tramway Creek, as per the Vegetation Management Plan developed in previous years. In addition, we will shortly finalise designs for the water quality ponds adjoining the existing development to ensure the standard of water quality flows will meet strict Water Sensitive Urban Design objectives. This work will continue in FY09. Land remediation In previous years, we have undertaken remediation of contaminated lands at Sandon Point as part of the existing development. During 2008, we undertook a review of land contamination from previous industrial activity at the Sandon Point North site, and we will address this as part of our development of the site once approved. The aim of this work is to provide a cleaner and healthier environment for Sandon Point residents and visitors.

Better, safer access We have entered into an agreement to replace the structurally deficient Wrexham Road Bridge at Thirroul. This will provide improved access and safety for the existing and future residents of Thirroul from the western side of the railway line to the McCauley’s Beach and nearby open spaces. Demolition of the old bridge is now complete, and its replacement is awaiting approval of the Major Project Application for the development of Sandon Point North.

Stockland Corporate Responsibility and Sustainability Report 2008

17

our commitment to our people

Our people Our employees create our products and deliver our services, connect with our stakeholders and bring our corporate responsibilty commitment to life.

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Stockland Corporate Responsibility and Sustainability Report 2008

progress and priorities

past

present

future

Last year, we said that we would:

This past year, we have:

In the coming year, our priorities are to:

Continue to strengthen and embed our remuneration framework, including enhancing employee education and communication on total pay for performance.

Continued to educate and train our people on performance management processes. We have improved our salary benchmarking processes, participated in a wider range of benchmarking surveys and developed tools to share that information.

•C  ontinue to sustain high employee engagement during challenging market conditions through a range of programs including management training and leadership development

Sustain the development of leadership and capabilities to match our business growth and needs.

Continued to provide a large range of programs to support building of capability and skills in all our employees.

Continue to sustain employee engagement through a range of programs including workforce planning to address business resourcing needs.

Continued to sustain very high employee engagement despite our people operating in a substantially more challenging market during the past year. We didn’t meet our turnover targets however– in particular, our non-regretted turnover increased.

•R  educe our turnover, however we have revised our turnover targets: – 12 per cent regretted rolling turnover – 7 per cent non-regretted rolling turnover – 19 per cent total rolling turnover.

Our turnover targets are: • 10 per cent regretted rolling turnover • 15 per cent total rolling turnover. Continue to enhance health and safety at Stockland, including: • Reducing injuries and serious incidents at our projects and properties • Integrating health and safety processes into daily operations • Engaging with external stakeholders to establish high standards of health and safety management and performance expectations throughout our supply chain • Improving our health and safety management system, including improving the level and quality of incident reporting and health and safety training.

•B  uild on our performance management program, with all employees to have development plans in place

We have continued to progress integrating health and safety into the way we work. We have integrated HSE into our design, procurement and project management processes.

•C  ontinue to engage with our employees to enrich our culture in a way that supports our ‘HSE Best Practice’ aspirations. We aim to maximise employee engagement and participation in our HSE program

We have built ‘HSE Best Practice’ requirements into our supply contracts and engaged with our suppliers including through tender assessments, pre-start briefings and monthly reporting.

•W  ork closely with our contractors and other business partners to ensure that they deliver on HSE, consistent with our expectations

We have continued to develop our health and safety management system including improved processes around risk assessments, contractor management, incident reporting and auditing. We have embedded health and safety training and developed an e-learning system that is now extensively implemented.

•L  aunch our new online incident reporting system to enhance our focus on improving reporting, analysis and determination of corrective actions arising from injuries and incidents.

Stockland Corporate Responsibility and Sustainability Report 2008

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our commitment to our people

Employee engagement FY08

Employee engagement

83%

FY07

85%

FY06

84%

FY05

83

%

82%

People leader index FY08

77% 74% 0

Our People Strategy guides how we attract, support, reward and develop our people. We refresh our People Strategy each year, and report on progress and key metrics to our Board each month. The People Strategy articulates the objectives and key principles we will undertake through the year to ensure we are responding to internal and external workforce needs and trends to foster a productive, safe and engaged workplace.

20

Stockland Corporate Responsibility and Sustainability Report 2008

4

79%

FY06

Employee engagement Engagement is about how employees think, feel and act about the organisation for which they work. Each year we undertake the ‘Our Voice’ survey to ascertain our level of employee engagement.

20

78%

FY07

FY05

0

Over the past year our People Strategy focussed on the following key objectives: • Creative and proactive people resourcing • A distinctive and compelling employment proposition • Simplifying and integrating processes and systems • Accelerating the development of leadership and capabilities • Going beyond compliance – engaging our people around health and safety and sustainability.

10

20

30

40

One of the measures we use to track our progress in creating our desired workplace is employee engagement. Engagement is about how employees think, feel and act about the organisation for which they work. Each year we undertake the ‘Our Voice’ survey to ascertain our level of employee engagement. The latest ‘Our Voice’ survey conducted in April 2008 showed that we have an employee engagement score of 83 per cent, which puts us above the Global High Performing Companies Norm7. It is slightly lower than our 2007 score of 85 and our 2006 score of 84 per cent but remains relatively very high, despite our people operating in a substantially more challenging market during the past year. While our employee survey highlights areas in which we are performing well, it also helps us to identify areas in which we can improve. The areas in which we scored most favourably in comparison with the benchmarked Global High Performing Companies Norm8 included: • E xecutive leaders’ ability to make decisions promptly and establish priorities • Developing people to their full potential • Providing opportunities for personal development and growth.

7 & 8 As measured by TP-ISR Global High Performing Norm.

50

60

As part of our sustainability aims at our Sydney office, Stockhome, we have been working towards an environmentally-preferable childcare facility. The Treehouse resonates with children but also with the ideas and natural themes associated with Stockhome. The Treehouse receives generous amounts of daylight via the skylight and has been designed using concepts to create as natural an environment as possible. Features include play spaces with natural timber floors, plants, dry and wet sandpits and a ‘Forest Area’. Environmental sustainability principles have been followed in the selection of equipment and supplies such as nappies and toys. Currently there are no design or operation rating tools for childcare facilities. We have been working collaboratively with the childcare project team – from the childcare provider to the builder – to provide a framework for environmentally-preferable childcare. This includes elements in the fit-out works, toys provided and ongoing environmental initiatives. We have modelled our approach to reflect current sustainability tools developed for other types of buildings and spaces and are working with industry, including the Green Building Council of Australia as well as Government agencies to share what we’ve learnt. Fit-out elements have been referenced against existing industry rating tools as there is no tool for childcare. The centre has improved performance in terms of minimising volatile organic compounds, an energy optimisation checklist, water efficient fittings and access to improved transport with public transport and cycling.

Treehouse This year we delivered on our commitment to helping our people manage their work-life balance with the provision of workplace-based childcare at our Sydney office.

Toys and childcare furniture Providing environmentally sound toys and childcare furniture has been difficult as no standards for environmentally-preferable toys or furniture currently exist in Australia. Working with KU, the childcare provider, our major reference for materials selection has been Good Environmental Choice (GEC). GEC is now looking to include childcare ranges as part of their furniture standard. They have also developed and released a draft toys standard, partly in response to the enquiries and interest from our Treehouse project. To provide further independent, specialist advice for this project we also engaged a childcare sustainability consultant. KU already had the Environmental Management System (EMS) in place. We have worked with KU to enhance their environmental checklists to parallel current built-form rating tools, incorporating target setting and quarterly monitoring of key initiatives. These have been incorporated into a green lease with obligations on both the lessee (KU) and lessor (Stockland).

Stockland Corporate Responsibility and Sustainability Report 2008

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our commitment to our people

Overall turnover rate

26

%

Median age

34

years

FY08 total Stockland workforce

Rolling turnover 9

1,375

FY08

13% 13%

FY07

13% 8%

26% 21%

Regretted Non-regretted/Stockland initiated

End of year turnover9 Age group

50-60

>60

FY07 No. exits 60 94 45 26 Head count9 385 478 224 107 Turnover rate 16% 20% 20% 25%

4 25 16%

FY08 No. exits 83 139 89 28 Head count9 392 554 236 129 Turnover rate 21% 25% 38% 22%

11 23 48%

Gender

60

FY08 No. exits 5 2 2 2 Head count15 15 41 32 17 Turnover rate 33% 5% 6% 12%

1 13 8%

Gender FY08 No. exits Head count15 Turnover rate

9 months) to provide recommendations to the Board. In 2007, matters raised included stakeholder engagement and environmental impacts. AR p10, 28-32. Additionally, all employees have a balanced scorecard that includes CR&S and linked to incentive payments. AR p8 AR p8-9. Directors are selected such that the Board has a balance of skills and experience. As such, the Board has extensive experience of the social and environmental context in which the business operates. www.stockland.com.au/about/mission.htm p3, AR p3, 11 onwards AR p9. The process for evaluating the performance of the Board is primarily focussed on the relationship between the Board and management, and the effectiveness of the Board itself. This process includes the performance of Committees, encompassing the Board CR&S Committee. No. Sustainability defined on p3 p2, 4, 32-33, 74 p47, 74 p15 p15 Stakeholders engaged on a case-by-case basis p2, 15-17, 34-37, 45 p15-17, 20, 22, 37-39, 45,

Performance Indicators Economic Disclosure on management approach EC1. Economic value generated EC2. Financial implications and other risks and opportunities due to climate change. Environment Disclosure on management approach EN3. Direct energy consumption EN4. Indirect energy consumption EN5. Energy saved due to conservation and efficiency improvements EN6. Initiatives to provide energy-efficient products and energy reductions achieved EN8. Total water consumption EN11. Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas (partial) EN16. Greenhouse gas emissions by weight EN17. Indirect greenhouse gas emissions by weight EN18. Initiatives to reduce greenhouse gas emissions and reductions achieved. EN22. T  otal weight of waste and disposal method (partial) EN23. Total number and volume of significant spills EN26. Initiatives to mitigate environmental impacts of products and services, and extent of mitigation (partial) EN28. Significant fines and non-monetary sanctions EN29. Significant environmental impacts of transport (partial) LABOUR PRACTICES Disclosure on management approach LA1. Total workforce LA2. Total number and rate of employee turnover LA4. Percentage of employees covered by collective bargaining agreements. LA7. R  ates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region (partial) LA10. A  verage hours of training per year per employee (partial) LA11. E  mployability and managing career endings (partial) LA12. % of employees receiving regular performance and career development reviews LA13. Workforce diversity

LA14. Ratio of basic salary of men to women by employee category

AR p17-20, Shareholder Review AR p44-48 p12-13. Carbon Disclosure Project Report 6, www.stockland.com.au/about/sustainability/ p3, 12-13, 49-50, 53-54 p62 p62 p9, 52, 54-55

Human Rights Disclosure on management approach

p52-56

p3, 11, 26, 43-44, 46-47, AR p8, www.stockland.com.au/about/sustainability/ SO1. Nature, scope, and effectiveness of programs p44-45. We are working to improve our (partial) understanding of our impacts and are developing a reporting system. SO2. Percentage and total number of business units All business units analysed for risks related to analysed for risks related to corruption. corruption SO3. Percentage of employees trained in p26 anti-corruption policies and procedures SO5. Public policy positions (partial) p5, 11, 32. Actual positions only partially disclosed. SO6. Political donations p11 SO7. Legal actions for anti-competitive behaviour, Nil anti-trust and monopoly practices SO8. Non-compliance with laws and regulations Nil Product Responsibility Disclosure on management approach p31-35, 38-40, 2006 CR&S Report p8-10, 2007 CR&S Report p26, 35, 40, www.stockland.com. au/about/sustainability/ PR5. Practices related to customer satisfaction p35-38, 45. Results from enterprise-wide survey (partial) not yet available and organisation-wide approach not yet disclosed. PR6. Marketing communications (partial) p26, 40. Discussion limited to ACCC + TPA training. PR7. Incidents of non-compliance with marketing Nil. regulations and voluntary codes PR8. Breaches of customer privacy Nil PR9. Significant fines Nil

p63 p57-59. We cover two case studies

p60-61. Total direct and indirect p60-61. Other indirect p52, 56, 60-63. No discussion of initiatives to reduce noise or waste impacts. p54, 56, 63. Our data is incomplete. We are working towards improving this Stockland has identified no significant spills p49-56. Impacts from noise, waste and materials not discussed. Stockland has identified no incidents of non-compliance with environmental laws or regulations p61. We provide details of the GHG emissions from business travel. p3, 19-20, 22, 28 p23 p24 All of our employees are on individual contracts

HR3. Employee training on human rights Society Disclosure on management approach

p26. This is a low risk area for Stockland. We seek to comply with all laws and regulations.  p26

p24, 28-29. We do not report on injuries for contractors p26. We do not report training hours by employee category p24-26 p25 p23-24, 27. Governance bodies not broken down by minority group. Highest governance group (Board) data: Gender: 1F, 7M. Age Band: 6 x 50-60, 2x>60. x2 executive directors included in employee data. p27

Stockland Corporate Responsibility and Sustainability Report 2008

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contacts

Greg Johnson National Corporate Responsibility and Sustainability Manager, Commercial Property [email protected] Justin Travlos National Sustainability Manager, Design and Delivery [email protected]

Corporate Responsibility and Sustainability Report Assurance Provider Banarra Stockland Corporation Ltd ACN 000 181 733 Head Office

Level 25, 133 Castlereagh Street Sydney NSW 2000 Sydney

Telephone

Michael Zorbas General Manager, Government Relations [email protected]

Melbourne

Amy Menere Senior Media and Corporate Communications Manager [email protected]

Brisbane

Joanne Trimboli Investor Relations Manager [email protected] Sally Hollingdale Community Involvement Coordinator [email protected] Chris Akayan Head of HR and Corporate Affairs (UK) [email protected]

We welcome your feedback, email: [email protected]

Telephone Telephone

+61 (0)2 9035 2000 +61 (0)3 9095 5000 +61 (0)7 3305 8600

Perth

Telephone

+61 (0)8 9368 9222

United Kingdom

37 Maddox Street London W1S 2PP Telephone +44 (0)845 070 4633 www.stockland.com

Disclaimer of Liability While every effort is made to provide accurate and complete information, Stockland does not warrant or represent that the information in this brochure is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot be excluded, Stockland accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information. Note: All figures are in Australian dollars unless otherwise indicated.

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Stockland Corporate Responsibility and Sustainability Report 2008

DESIGNED AND PRODUCED BY ROSS BARR & ASSOCIATES

Stockland Contacts Siobhan Toohill General Manager, Corporate Responsibility and Sustainability [email protected]